Snowflake: The New Growth Engine in the Data Field

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Recently, Snowflake's stock dropped by 7.7% in pre-market trading after the release of its Q2 financial report, giving the impression of poor company performance. However, a deeper analysis reveals that Snowflake is actually demonstrating strong growth momentum and making strategic progress in product innovation and market expansion. Despite this, the market's desire for an exceptional performance seems to remain unfulfilled.

This quarter, Snowflake's product revenue grew by 30% year-over-year, reaching $8.29 billion, surpassing market expectations by 2%. While this growth rate is slightly slower than the previous quarter's 35%, achieving such results in the current complex and volatile market environment undoubtedly proves the company's strength. Of particular note is that the product gross margin and free cash flow rate reached 76% and 7% respectively, exceeding market expectations.

Snowflake's performance in product innovation is particularly noteworthy. In the first half of the 2025 fiscal year, the company launched a number of new products that matched the total for the previous year, a speed rarely seen in the industry. These new products are expected to have a certain impact on revenue in the 2025 fiscal year, with more significant growth likely to manifest in the 2026 fiscal year.

In terms of marketing, Snowflake's execution is also commendable. This quarter, the company successfully secured two nine-figure deals, which is particularly challenging in the current market environment. Additionally, the growth of a high-quality customer base indicates strong momentum. These achievements, combined with the company's adjustments to sales incentive measures and a greater focus on long-term customer value and consumption growth, are closely tied to its strategy.

Despite recent cybersecurity events causing some market concerns, Snowflake's performance remains exceptionally robust. The company's management has clearly stated that these cybersecurity events have not had any substantive impact on its business. This partly demonstrates Snowflake's strong capabilities in the security field and also showcases the company's maturity and composure in crisis management.

Overall, Snowflake's latest financial report demonstrates outstanding performance in product innovation, market expansion, and customer service, showing steady growth. The introduction of new products and expanded market influence suggest significant growth potential for the company in the future, making it an investment opportunity worth paying attention to. Let us look forward to Snowflake's continued success in the field of data technology.